Syndic language. Clearly explained.

Attendance quorum is the minimum number of co-owners and the minimum number of shares that must be present or represented at a general assembly to be able to make valid decisions. A general assembly is legally valid if more than half of the owners are present/represented at the start, who together hold at least half of the shares. When the attendance quorum is not met, no valid decisions can be made and a second meeting must follow. This takes place at least 15 days later and there you can decide regardless of the number present.

Assets are everything the co-ownership owns or is owed, such as money in the account, outstanding receivables, or other possessions. Assets appear on the balance sheet and are read together with liabilities. Assets help understand what resources the co-ownership has at that moment.

The auditor is the person who checks the financial documents of the co-ownership and reports on them to the general assembly. The auditor is appointed by the general assembly and can be a co-owner or an external person, but never the manager. You encounter this concept when preparing financial statements and discussing discharge.

The agenda is the list of topics or agenda items that the general assembly will discuss and decide on. Only items on the agenda can be validly decided upon, because co-owners must know in advance what they are voting on. The approved agenda also forms the basis for the minutes.

A balance sheet is a financial statement that shows what the co-ownership owns (assets) and what it owes or must provide (liabilities) at a given moment. The balance sheet is part of the financial statements and is usually presented for approval to the general assembly. The balance sheet helps to understand the financial position of the co-ownership at a glance.

A block policy is the (fire) insurance that the co-ownership takes out for the entire building and sometimes (depending on the policy) also certain private risks. What is and is not covered depends on the policy conditions and guarantees. A block policy becomes relevant in case of damage, repairs, discussions about coverage, and opening of a damage claim file.

The business number is the official number with which the co-ownership is registered in the Business Register. The business number is relevant for administration, invoicing, and official communication. You often encounter this number on documents, invoices, and bank details.

The board of co-ownership is a body that can support the manager and checks whether decisions are correctly implemented. The board consists of co-owners and is appointed by the general assembly. The role and obligation are related to the functioning of the co-ownership. The board has mainly a supervisory role. The board can only take on additional mandates if the general assembly decides so.

The competitive amount is the threshold above which the manager must request multiple quotations. This amount is set by the general assembly to ensure transparency and value for money. You encounter this concept when work or assignments are outsourced.

Credit is an accounting entry that increases an account or reduces a debt, depending on the type of account. Credit is relevant when working with double-entry accounting or reading financial reports. In co-ownership context, this mainly appears in accounting and financial statements.

A credit note is a document that corrects a previously invoiced amount, for example due to an error, return, or price difference. A credit note affects the settlement and must be properly processed in the accounts.

Common parts are the parts of the building that are owned by all co-owners together, such as the entrance, stairwell, lift, or roof. The co-ownership manages and maintains the common parts through decisions by the general assembly. Common parts are important because they determine which costs are common and which decisions are made together.

Co-ownership is the situation where multiple people together own one property. Forced co-ownership arises automatically with apartment buildings with private and common parts and leads to a co-ownership association. Voluntary or fortuitous co-ownership occurs more often with joint purchase or inheritance and may be organized differently.

The co-ownership regulations are a statute that establishes the rights and obligations of co-owners and provides rules on use and management. The regulations also determine how decisions are made and executed. The co-ownership regulations work together with the deed of division as the legal framework of the co-ownership.

The bylaws of the co-ownership are the deed of division, internal rules regulation, and co-ownership regulations together. The bylaws establish how the building is legally structured and how the co-ownership operates. Bylaws are relevant when discussing distribution keys, use, rights, and obligations.

A co-ownership association is the legal entity, with a business number, consisting of all co-owners of a building with common parts. The co-ownership manages the building, makes decisions through the general assembly, and pays common costs. The co-ownership is relevant because it is the framework within which you decide, pay, and make agreements.

The deed of division is a notarial deed that establishes how the building is divided into private and common parts and what shares/quotas are attached to them. The deed of division, together with the regulations, forms the bylaws of the co-ownership. You encounter the deed of division when discussing distribution keys, common parts, or voting rights. It is the bible of the co-ownership.

Debit is an accounting entry that reduces an account or increases a debt, depending on the type of account. Debit is relevant in double-entry accounting and financial reporting. In co-ownership context, you mainly encounter this in accounting statements.

See Discharge

Double-entry accounting is a system where each transaction is recorded twice, as debit and as credit. Double-entry accounting provides control and balanced figures and is mandatory in certain cases. This concept is relevant when you want to understand financial statements, general ledger, and balance sheet in detail.

A demand notice is a formal letter requesting that someone fulfill an obligation within a certain period. In co-ownership context, this mainly occurs for unperformed work or payment problems. A demand notice is relevant when you want to communicate formally and clearly about follow-up.

Discharge is confirmation that an obligation or responsibility has been completed. In a co-ownership, discharge is a decision of the general assembly whereby the general assembly accepts the management conducted and the financial statements presented for a closed financial year. By granting discharge, the general assembly confirms that the management has been reviewed and approved for the manager, and if applicable also for the auditor. The decision for discharge is recorded in the minutes of the general assembly.

A damage file is the collection of documents and communication about a damage claim, such as photos, reports, quotations, and insurance documents. A damage file is relevant when following up repairs and dealing with the insurer. A good damage file prevents disputes and speeds up handling.

A distribution key is the way the co-ownership distributes costs among co-owners. A distribution key is usually established in the deed of division and can vary by cost type (for example for lift costs or heating). Distribution keys are relevant because they determine who pays what, even when not everyone uses the same facilities. A common distribution key is based on the quotas; everyone contributes according to their share of the quotas.

An extraordinary general assembly is an additional meeting outside the annual (statutory) general assembly. An extraordinary general assembly is organized when decisions cannot wait, for example for urgent work or unexpected financial decisions. The decisions of an extraordinary general assembly are recorded in minutes, just like at a regular GA.

An entry is recording a financial transaction such as an invoice, payment, or receipt. Entries together form the accounting of the co-ownership and lead to settlement and financial statements. In practice, you notice entries when you process invoices, track bank statements, or prepare financial statements.

EPC is the energy performance certificate of a building and gives a score on energy efficiency. In a co-ownership, EPC mainly appears at sale, renovation plans, or energy projects.

A financial year is the twelve-month period to which the accounting, settlement, and financial statements relate. The financial year may coincide with the calendar year but does not have to. The financial year is important because discharge, settlement, and financial statements are always tied to a specific financial year.

Final settlement is the settlement drawn up at the end of the financial year based on actual costs. Final settlement is usually discussed together with the financial statements at the annual general assembly. Final settlement determines whether co-owners receive money back or must pay additional charges.

Fixed costs are predetermined costs that do not vary with consumption or use. In a co-ownership, this often concerns administrative or fixed management costs. Fixed costs are relevant for budgeting, transparency, and discussion about 'what is included'.

A fixed fee is an agreed amount for a task or service, regardless of actual time spent. In co-ownership context, this often appears in agreements about management services or certain management tasks. A fixed fee is relevant when you want to compare costs or understand 'extras'.

Financial statements are the annual financial overview of the co-ownership for the closed financial year. Financial statements bundle the key figures, such as the balance sheet and income statement, and form the basis for final settlement. Financial statements are presented to the general assembly and the decision for approval is recorded in the minutes.

The general assembly is the highest decision-making body of the co-ownership and all co-owners are invited to it. The general assembly decides on management, maintenance, costs, budgets, and mandates such as the appointment of the manager. Decisions of the general assembly are recorded in minutes because minutes later prove what was decided.

The general ledger is the overview of all general ledger accounts on which the financial transactions of the co-ownership are recorded. The general ledger is relevant when you want to understand the financial statements or analyze costs by category. In practice, you use the general ledger to see where the money went.

A general ledger account is a specific account in the general ledger on which a type of cost or income is collected, such as 'lift maintenance', 'stairwell cleaning', or 'insurance'. General ledger accounts make it possible to group and compare costs. For example, all invoices from the cleaning crew are bundled under the general ledger account 'stairwell cleaning', so at the end of the year you can easily see how much stairwell maintenance cost. You encounter this in financial reports and when preparing settlement.

An inventory is a list of goods and possessions of the co-ownership, such as keys, materials, or installations. An inventory is relevant when transferring to a new manager or with damage and maintenance. An inventory helps keep track of 'what we have' and 'what is missing'.

The internal rules regulation contains practical agreements about daily living together and the practical functioning of the general assembly. The internal rules regulation is supplementary to the bylaws and must not contradict them. This concept is relevant for house rules, complaints, and practical agreements.

The income statement provides an overview of the costs and contributions of the co-ownership over the financial year. A co-ownership has no profit motive: any surplus or deficit is settled through settlement with the co-owners.

An interim manager is someone who temporarily takes over the management of the co-ownership when there is (not yet) a permanent manager. An interim manager is appointed by a decision of the general assembly and must be recorded in the minutes with the duration of the appointment specified. An interim manager is especially relevant at the startup of a new co-ownership, when a manager quits or is replaced, or while awaiting a new appointment.

Liability is the legal responsibility when damage occurs or when agreements and obligations are not properly met. In a co-ownership, liability can rest with the association itself, the manager, or an individual co-owner, depending on who had which task and what was decided. In practice, it helps if decisions are clearly made and recorded, as this later determines who is responsible for what.

Liability insurance is a policy that covers damage caused to third parties by errors or negligence in management. In a co-ownership context, this often concerns the liability of the manager or the association for negligent management. Liability insurance reduces risks but does not replace careful management or clear decisions.

Liabilities are the obligations and debts of the co-ownership, such as outstanding invoices or provisions. Liabilities appear on the balance sheet opposite assets. Liabilities help understand what obligations remain in addition to available funds.

MAR is a standardized scheme for recording costs and revenues uniformly. This can help compare figures and report financial information clearly.

An MJOP is a plan that schedules maintenance and renewal of common parts over multiple years. An MJOP helps make future costs predictable and build budgets in time. An MJOP is especially relevant for larger works and when determining reserve funds and priorities.

Peppol is a European network for safely sending and receiving electronic invoices. Peppol becomes relevant because more and more suppliers send invoices through this network, and systems must be able to connect to it.

Private parts are the parts of the building that are exclusively owned by one co-owner, such as an apartment or garage. Private parts are in principle the responsibility of the owner, unless statutes or decisions determine otherwise. The distinction between private and common determines who pays and who decides.

A professional manager is a manager who does this professionally and for compensation. A professional manager is appointed by the general assembly and works within a contract and legal requirements. A professional manager must be recognized by the BIV (Real Estate Professionals' Institute).

A provision is an advance that co-owners pay for common costs. This gives the co-ownership enough money to pay invoices during the year. At the general assembly, the budget for the coming financial year is set. Based on this, it is calculated how much each owner must contribute, according to their shares (quotas). These provisions are requested at fixed intervals, for example quarterly or annually. At settlement, it is checked whether the requested provisions were sufficient to cover actual costs. Provisions determine how much financial resources the co-ownership has available during the year.

A proxy is the authorization by which a co-owner allows someone else to participate and vote on their behalf at the general assembly. A proxy determines who represents someone and counts toward attendance and votes. Proxies are recorded and checked during the assembly and are practically often kept as an attachment or registration.

See Attendance Quorum

See Share

Reconciliation is the process of matching payments to invoices and checking bank transactions against what is in the accounts. Reconciliation ensures that you see which invoices are paid, which are still outstanding, and that there are no duplicate or incorrect entries. Reconciliation is especially important when preparing the settlement.

A representative is someone authorized by a co-owner to act on their behalf.

The reserve fund is the amount set by the general assembly to be able to pay larger, non-annual expenses. It is built up through contributions from co-owners and may not be used for daily costs. Such a reserve fund is not optional: every co-ownership is legally required to set aside at least 5% of common costs annually. The fund ensures that larger works remain financially feasible and strengthens the stability of the building.

Your share is the portion of co-ownership attached to your property. A share determines how much you contribute to common expenses and how much your vote counts in the general assembly. The shares of all parts of the building - apartments, shops, parking spaces, storage rooms, etc. - are recorded in the deed of division. This deed is signed by each co-owner for approval when purchasing the property. Shares are usually expressed in thousandths or ten-thousandths.

Settlement is the calculation where paid advances - also called provisions - are compared with actual costs. Based on the settlement, an excess is refunded or a deficit is charged to co-owners. Settlement is typically discussed and approved at the (statutory) general assembly, together with the financial statements.

Statutory means that something is established in the bylaws of the co-ownership and is legally binding. Statutory rules apply to all co-owners and form the basis on which decisions and distributions are applied. Statutory rules can only be changed by a decision of the general assembly according to the legally required majority and must be officially recorded.

The statutory assembly is the mandatory annual general assembly of the co-ownership. At the statutory assembly, fixed key points are dealt with such as financial statements, settlement, budgets, and mandates. The decisions of the statutory assembly are recorded in the minutes.

A unit is a private part within the co-ownership, such as an apartment, garage, or storage room. Units are important because they are linked to shares/quotas and distribution keys. Discussions often concern 'which units pay for what'.

Utilities are services such as water, gas, and electricity that the building uses. Utilities are relevant because they often form a large part of common costs and appear in settlement. Discussions often concern distribution, meters, and allocation.

A voluntary manager is a co-owner who takes over the management of the co-ownership without professional status and usually without compensation. A voluntary manager is appointed by the general assembly and works within the same statutory and legal framework. This concept is relevant for small buildings where self-management is practical and affordable.

The working capital of a co-ownership is the amount set by the general assembly to finance the daily management of the co-ownership. Working capital is determined at the startup of the co-ownership and thereafter confirmed or adjusted annually together with the budget. Working capital is requested through provisions. Working capital is used for ongoing expenses such as maintenance, minor repairs, and utilities. It is settled at the end of the financial year based on actual costs. The permanent working capital of a co-ownership association is a one-time deposit by owners at purchase, serving as a permanent financial buffer in the checking account. It catches seasonal shortfalls or unexpected invoice spikes, so the co-ownership is not dependent on periodic provisions. This can be established when the co-ownership decides on it at a general assembly.